The S$1.8 billion collective sale tender for People's Park Centre has ended with no bids

Aug 19, 2022

THE collective sale tender for Chinatown's People's Park Centre expired on Thursday (Aug 18) with no offers.

A spokeswoman for its marketing firm, ERA Realty Network, told The Straits Times that private negotiations with select developers would begin within the next 10 weeks.

It happened three years after an attempt to sell the center as a whole for S$1.35 billion fell through because a majority of owners refused to sell.


According to property specialists, the S$1.8 billion price tag may be a detriment to developers because to the hefty capital requirement.

However, considering the site's size and proximity to the Central Business District, they believe larger players or consortiums may be interested.

Last month, the mixed-use property was put up for collective sale by public tender with a reserve price of S$1.8 billion.

Sunny Wong, who leads the ERA team in charge of the development's collective sale, stated, "There have been requests, but developers had to examine the quantity."

"Demand for mixed-use complexes is high, particularly following the sale of the Golden Mile Complex, Tanglin Shopping Centre, Peace Centre, and Peace Mansion, and there is no extra buyer's stamp duty (ABSD) for commercial land."

While buyer's stamp duty is applicable to all properties, the ABSD, which was implemented as part of cooling measures, is solely applicable to residential properties.

People's Park Centre's reserve price equates to a land rate of S$2,620 per square foot per plot ratio (psf ppr).

It also takes into account the differential premium and the premium to upgrade the land tenure to a new 99-year lease.

The commercial-cum-residential development was built in 1970 and lies on a 95,467 square foot (sq ft) lot with a gross floor area of approximately 821,017 sq ft.

It consists of a 13-story and a 30-story building with 324 shops, 256 offices, 120 apartments, and a parking.

According to ERA, shop owners might get between S$213,000 and S$22.7 million in selling proceeds, while office owners could receive between S$536,000 and S$12.5 million.

Apartment owners might earn between S$2.39 million and S$3.42 million, while penthouse owners could receive between S$3.42 million and S$5.33 million.

Lee Qing Qing, 68, who owns two businesses at People's Park Centre, told ST she hoped the collective sale would go forward since it would allow her to retire.

"Of course, I'm sad and nostalgic, but everything good must come to an end."

"It's been a good 48 years, but it's time for me to rest and enjoy my life," she remarked last month in an interview.